One of the most important decisions a new business owner has to make is the location of their center. There is a lot to consider and many factors will play into your decision. This white paper covers important factors to consider when choosing a location for your laser tag center.
Is There an Ideal Population Size?
A good rule of thumb is to have a population of 80,000 - 100,000 people within a 10 - 15 mile radius of your center. This provides a solid base of potential customers to draw from on a regular basis.
There are, however, exceptions to this rule. If your location is near a large city with high traffic, or if the site is part of a well-established entertainment destination, a smaller local population can still work. The key is understanding where your customers will come from and how far they are willing to travel.
Identifying and Rating Your Competition
Before committing to a location, research any existing competitors in the area. Visit their centers, rate their service, evaluate their arena design and the quality of their equipment. This will give you a realistic picture of what you are up against and where you can differentiate.
Consider the population distribution around competitor sites. If a competitor is drawing from the same population base you are targeting, you will need a strong strategy to win customers over - or find a location where the population is underserved.
What About Urban Areas?
Successful laser tag centers exist in all population types - from dense urban environments to smaller towns. The type of location you choose will affect your rent, your customer base, and your marketing approach. Below are some of the most common location types and what to consider for each.
Shopping Malls
Shopping malls are a popular choice, especially in hot countries such as China, Malaysia, and Dubai, where outdoor entertainment options are limited. Mall locations benefit from built-in foot traffic - the bigger the mall, the better.
There are some important considerations when looking at mall locations:
- Rent - Mall rent tends to be higher. To manage costs, consider keeping your arena small and using multi-level designs to maximize your playable area. Be cautious of lease agreements that include revenue-sharing arrangements on top of base rent.
- Opening Hours - Malls often have strict operating hour requirements. Try to negotiate exemptions that allow you to operate outside standard mall hours, especially for private events and corporate bookings.
- Foot Traffic - The main advantage of a mall location is walk-in traffic. A larger, busier mall will give you more exposure and more impulse visits.
Industrial Areas
Industrial areas typically offer cheaper rent, making them attractive for operators who want a larger arena space without paying premium prices. Look for locations where there is already an existing cluster of entertainment businesses - such as bowling alleys, skating rinks, or go-kart tracks. Being near complementary entertainment draws in customers who are already in the mindset for a fun outing.
Residential Suburbs
Suburban locations have the advantage of being surrounded by your target customers - families with children. Laser tag is a destination-based business, so customers will travel to you if the experience is worth it. Class B real estate works well for this type of location, keeping your overhead manageable while still being accessible.
Entertainment Hotspots
Setting up near other non-competitive entertainment services is a proven strategy. These areas have already been market-tested, and locals already associate the area with entertainment and leisure. Being part of an entertainment cluster means you benefit from the traffic that other businesses generate.
Tourist Destinations
Tourist areas can provide a steady stream of new customers, but they come with higher rent. Multi-level arena designs can help you get more playable space out of a smaller, more expensive footprint. Be aware that tourist destinations often come with seasonal income fluctuations - you will need to plan your financials around peak and off-peak periods.
City Centers
City center locations share many of the same challenges as tourist destinations - primarily high rent. Again, multi-level arenas can help maximize your space. Try to locate your center near other entertainment venues to benefit from shared foot traffic and the established reputation of the area.
Don't Forget Parking
Parking is an often-overlooked factor that can make or break a location. Your parking needs to be close, sufficient, and safe. Families with young children will not want to walk long distances from a remote car park, especially at night.
Check your local authority requirements for parking ratios and accessibility standards. If your first application to the local authority is turned down, do not be discouraged - present a well-thought-out case that addresses their concerns. Many operators have succeeded on a second attempt after refining their proposal.